Written by: Tiger Research Reports
Compiled by: TechFlow
summary
The trend of corporate investment in Bitcoin is expanding: Since the US Securities and Exchange Commission (SEC) approved the Bitcoin spot ETF, corporate investment strategies have gradually heated up. This trend is not limited to Western markets, but is extending to Asia.
Why companies choose Bitcoin: Bitcoin has shown great appeal in diversifying asset allocation, improving fund management efficiency and enhancing corporate value.
Participation and development prospects of the Asian market: Asian corporate investment in Bitcoin is still in its infancy, but successful cases such as Metaplanet show that the market has great potential for expansion. However, regulatory uncertainty and lack of institutional support remain major obstacles.
1. Introduction
This year, the U.S. Securities and Exchange Commission (SEC) approved a Bitcoin spot ETF. This move became a milestone in the institutionalization of crypto assets. Since then, more and more companies have begun to incorporate Bitcoin into their investment strategies. For example, MicroStrategy has included Bitcoin as one of its important financial assets. This trend is rapidly expanding from Western markets to Asian markets and gradually becoming a global phenomenon. This article will analyze the main strategies and factors behind the adoption of Bitcoin by companies.
2. Corporate investment in Bitcoin
As the value of Bitcoin is gradually recognized, its appeal is also increasing. At the national level, some governments have also begun to discuss investing in Bitcoin. For example, El Salvador has taken positive actions to continue to purchase Bitcoin. In the United States, discussions about President-elect Trump's plan to reserve Bitcoin have become the focus. In addition, Poland and Suriname are also exploring the possibility of using Bitcoin as a strategic asset.
However, with the exception of El Salvador, most countries' investment in Bitcoin is still at the stage of policy discussion or campaign promises, and there is still some time before actual implementation. The United States has not yet directly invested in Bitcoin, but holds some Bitcoin to recover criminal proceeds. In addition, due to the large volatility of Bitcoin prices, central banks in many countries still prefer gold as a more stable reserve asset.
While government action on Bitcoin has been slow and limited, corporate involvement is accelerating. Companies like MicroStrategy, Semler Scientific, and Tesla have made bold investments in the Bitcoin space. This is in stark contrast to the cautious approach taken by most governments.
3. Three reasons why companies are interested in Bitcoin
Investing in Bitcoin is no longer just a trend, it is gradually becoming a core financial strategy for companies. Bitcoin has attracted the attention of companies due to its unique characteristics. Its value is mainly reflected in the following three aspects:
3.1. Achieve asset diversification
Traditionally, companies' financial assets are usually configured around stable options such as cash and government bonds. These assets can ensure liquidity and help avoid risks, but their low yields often make it difficult to outperform inflation, which may lead to a decline in the value of real assets.
Source: Michael Saylor X
Bitcoin, as an emerging alternative asset, can effectively make up for these shortcomings. It not only has high return potential, but also diversifies investment risks and provides companies with new asset allocation options. Over the past five years, Bitcoin has significantly outperformed traditional assets such as the S&P 500, gold and bonds, and even junk bonds, which are considered high risk and high reward. This shows that Bitcoin is not just an alternative, but an important tool for corporate financial strategies.
3.2. Improving asset management efficiency
Another important reason why Bitcoin attracts enterprises is its efficient asset management features. Bitcoin supports 24/7 transactions, which provides enterprises with great flexibility, allowing them to adjust asset allocation at any time. In addition, compared with traditional financial institutions, the cash conversion process of Bitcoin is more convenient and does not need to be restricted by bank business hours or cumbersome operating procedures.
Source: Kaiko
Although companies are still concerned about the possible impact on prices when cashing out Bitcoin, this problem is gradually easing as market depth increases. According to Kaiko data, Bitcoin's "2% market depth" (the total amount of buy and sell orders within 2% of the current market price) has grown steadily over the past year, and the average daily market depth has reached about $4 million. This shows that the liquidity and stability of the Bitcoin market are continuing to improve, creating a more favorable environment for companies to use Bitcoin.
3.3. Enhance corporate value
Holding Bitcoin is not only a financial choice, it can also significantly increase business value and stock price. MicroStrategy and Metaplanet, for example, both saw their share prices rise significantly after announcing their Bitcoin acquisitions. This strategy is not only an effective marketing tool in the digital asset industry, but also provides a way for companies to seize growth opportunities in this field.
4. Asian companies are increasing their investment in Bitcoin
Although Asian companies are still in the early stages of investing in Bitcoin, they are gradually increasing their holdings. For example, China's Meitu, Japan's Metaplanet and Thailand's Brooker Group have viewed Bitcoin as a strategic financial asset. Nexon has also made large-scale Bitcoin purchases. Metaplanet in particular has been particularly active, acquiring 1,142 Bitcoins in the past six months.
However, the current participation of Asian companies in the Bitcoin market is still low. According to statistics, the total amount of Bitcoin held by Asian companies accounts for less than 1% of the world, mainly due to regulatory restrictions in many countries. For example, in South Korea, companies cannot open accounts at cryptocurrency exchanges, and also face many obstacles to investing in overseas Bitcoin ETFs or launching funds related to cryptocurrency trading. Therefore, these companies can hardly invest in Bitcoin through formal channels.
Despite the many challenges in the regulatory environment, the potential for Asian companies to participate in the Bitcoin market is still worth looking forward to. Some companies have bypassed regulatory restrictions by setting up overseas subsidiaries to invest. At the same time, countries such as Japan have made some progress in relaxing relevant policies. Leading corporate investment cases such as Metaplanet are attracting more market attention. These positive changes may pave the way for Asian companies to participate more widely in the Bitcoin market in the future.
5. Conclusion
Bitcoin investment is gradually becoming a popular financial strategy adopted by enterprises. However, its price volatility remains an important challenge for enterprises, especially under the influence of external factors such as international politics. The market crash in 2022 clearly exposed the potential risks of enterprises holding Bitcoin. Therefore, enterprises should be cautious when investing in Bitcoin and reasonably match it with safer assets to reduce overall risks.
In addition, a clear institutional framework is needed for Bitcoin to further develop in corporate investment portfolios. Currently, there is a lack of clear guidance on the holding and accounting of crypto assets, which often confuses companies in actual operations. Once these uncertainties are eliminated, Bitcoin may play a more important role in the diversification of corporate assets.
